Netflix closed at $67.85, down 2.49%.

The options tape was dominated by two aggressive, premium-paid put structures. A five-leg multi-expiry position carried a net debit of $18.64 million, while a second double-long put package added another $9.42 million in bearish exposure. Both trades featured in-the-money strikes and long-dated expirations, signaling institutional conviction in sustained downside rather than a short-term hedge. The scale of this put buying outweighed smaller bullish flow, leaving the tape clearly tilted toward bearish positioning.

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Options Indicators

Netflix’s implied volatility is 40.83%, and with an IV percentile of 57.77%, current volatility sits in a neutral range rather than at an extreme. Combined with an IV/HV ratio of 1.15, this suggests the options market is pricing in moderately higher forward volatility than recent realized movement, but overall option premiums do not appear especially cheap or especially expensive at current levels. The Call/Put volume ratio is 1.37.

Large Trades

A five-leg calendar-style put structure with a net debit of $18.64 million was the largest featured trade and reads as a sizeable bearish positioning with layered downside exposure. The trader bought 6,600 Jan 15, 2027 $100.00 puts, bought 4,864 Oct 2, 2026 $72.00 puts, bought 2,176 Oct 2, 2026 $73.00 puts, and bought 1,304 Oct 2, 2026 $74.00 puts, while selling 1,304 Dec 17, 2027 $120.00 puts. With NFLX referenced at $67.85, all listed strikes are in the money, making this a deep intrinsic-value put structure rather than a cheap tail hedge. Because the combination is dominated by long put exposure across multiple maturities and strikes, the strategic intent appears to be a substantial downside hedge or outright bearish bet, using the short longer-dated $120.00 put to partially finance a broader multi-expiry long-put position.

A directional double-long put combination with a net debit of $9.42 million was the second highlighted trade and reinforces the same bearish message. This structure involved buying 1,476 Dec 18, 2026 $107.00 puts and buying 1,011 Jan 15, 2027 $105.00 puts, both of which are in the money versus the $67.85 stock reference. As a same-direction long put package, this is not a spread but a concentrated downside wager that benefits from continued weakness and potentially elevated volatility over a longer horizon. The willingness to pay a large upfront premium for two in-the-money long-dated puts suggests conviction in sustained downside risk rather than a short-term tactical hedge.

Overall, the large-trade flow points clearly bearish. The standout orders were both premium-paid put combinations, heavily skewed toward in-the-money long puts and longer-dated expirations, which typically signals investors seeking meaningful downside participation or protection against further weakness. While there were a few smaller bullish or premium-collection trades elsewhere in the broader flow, they were overshadowed by the scale and aggressiveness of the bearish put buying, leaving the options tape tilted toward a cautious-to-negative outlook on NFLX.

Strategy Reference

For traders unwilling to mirror the large in-the-money long puts or post substantial margin, selling a wide bear call spread or a far out-of-the-money put with a low assignment probability may be more capital-efficient, though the current tape suggests positioning against the prevailing bearish flow could require confirmation from price stabilization first.